South Korea Weighs Ownership Caps for Crypto Exchanges with Transition Measures

South Korean financial authorities are revisiting their policy on limiting major shareholders' stakes in cryptocurrency exchanges. The goal is to disperse ownership and reduce concentration of power, as part of a broader digital asset law.

The current plan aims to limit major shareholders' stakes, but the authorities are now considering transition measures that would allow existing major shareholders to sell their stakes legally without triggering market disruption.

One option under consideration is allowing individual shareholders to hold between 15% and 20% of an exchange, while consortium structures might be permitted to hold more than 30%, taking into account practical management control. These thresholds represent a significant change from the current ownership landscape, where some exchanges are controlled by a single major shareholder or a small group of investors.

The transition measures could provide a structured pathway for existing major shareholders to reduce their holdings without facing legal penalties or causing sudden sell-offs that might destabilize the market.